What is meant by the “economizing problem”?
Please provide the best answer for the statement.
The economizing problem stems from two related facts. Economic wants are unlimited because they cannot be completely satisfied with the existing limited supply of resources available for production. Resources are said to be scarce relative to these unlimited economic wants. For this reason, people must make choices and economize on resource use.
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A market with a large number of sellers
A) can only be a perfectly competitive market. B) might be an oligopoly or a perfectly competitive market. C) might be a monopolistically competitive or a perfectly competitive market. D) might be a perfectly competitive, monopolistically competitive, oligopoly, or monopoly market. E) can only be a monopolistically competitive market.
Which of the following is not a reason for studying credit market frictions?
A) explaining features of financial crises. B) explaining key elements of financial market behavior. C) understanding why Ricardian equivalence may not work. D) explaining why collateral does not matter.
Most of the Superfund has been spent on
a. education of the public on environmental issues b. research c. court costs and legal fees d. cleanup and rehabilitation of polluted areas e. development and installation of antipollution devices
The conventional fiscal policy to fight inflation would be to
A. increase the rate of monetary growth. B. decrease the rate of monetary growth. C. run a government surplus. D. run a government deficit.